China and the rest: Grouping's ever-widening economic gap, Pg16

Key Highlights:

• The 18th BRICS Summit is being hosted in New Delhi in 2026.
• BRICS has expanded from its original four members (BRIC) to an informal grouping of 11 major emerging markets and developing countries.
• China's economic might, measured by Gross Domestic Product (GDP), has significantly outpaced other BRICS members, with its GDP alone more than double the combined GDP of the other four original members by 2026.
• The grouping was initially formed to provide a platform for emerging economies and counter the dominance of industrialized nations like the G7.

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Detailed Insights:

• The BRICS grouping originated as BRIC in 2006 on the sidelines of the United Nations General Assembly in New York.
• South Africa joined in 2010, leading to the renaming of the group to BRICS.
• The current 11 members include Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the United Arab Emirates.
• China's economic growth accelerated significantly, surpassing the combined economic size of BRIS (BRICS minus China) by 2009.
• China has also opened a massive economic gap against G7 countries (excluding the US) since the 2008 financial crisis.
• In terms of GDP per capita, an average Chinese citizen is now richer than a Brazilian and twice as rich as a South African, and five times richer than an average Indian.
• The overwhelming economic disparity within BRICS raises questions about its impact on the grouping's collective decisions and original objectives.

Key Concepts Involved:

• BRICS: An informal association of major emerging national economies, initially formed to challenge the dominance of developed economies.
• Gross Domestic Product (GDP): The total monetary or market value of all finished goods and services produced within a country's borders in a specific time period.
• GDP per capita: A measure of a country's economic output per person, calculated by dividing the total GDP by the population.
• G7: An intergovernmental political forum consisting of seven highly industrialized countries: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.